What: Lindex Group maintains growth momentum in Q2 2025 despite market challenges, with digital sales expansion and improved Stockmann division performance.

Why it is important: This performance reflects the broader retail industry's transformation, where companies must simultaneously manage traditional operations, digital expansion, and strategic restructuring to remain competitive.

Lindex Group's second quarter of 2025 demonstrates resilience in a challenging retail environment, with revenue increasing by 0.9% to EUR 253.9 million. The Lindex division achieved 1.5% growth, while the Stockmann division maintained stable performance. Despite pressure on gross margins, which decreased to 58.0% due to increased promotional activities, the company's digital channels showed strong momentum with double-digit growth. The Group's adjusted operating result of EUR 22.2 million, though lower than the previous year, reflects ongoing adaptation to market conditions. The company's strategic progress is evident in both divisions, with Stockmann's adjusted operating result improving to EUR 0.2 million, marking its fifth consecutive quarter of improvement. The imminent conclusion of the corporate restructuring programme signals a new phase for the Group, particularly as it advances the strategic assessment of its department store business.

IADS Notes:

The Q2 2025 results align with Lindex Group's broader transformation journey. In February 2025, the company demonstrated strong digital growth with channels reaching 18.9% of total revenue, while September 2024 saw discussions about potential strategic alternatives for the Stockmann division. The planned closure of the ITIS department store, announced in February 2025, exemplifies the Group's commitment to network optimization, while December 2024's extension of the strategic review highlights the careful approach to restructuring. These developments reflect the company's balanced approach to managing both digital expansion and physical retail transformation.

Lindex Group’s half-year financial report: challenged second-quarter, full-year guidance maintained